What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89

What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year
from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5%
respectively?
a) 101.54
b) 101.71
c) 102.67
d) 102.89
by

1 Answer

Answer :

c) 102.67
by

Related questions

Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of WACC, weight assigned to the preferred stock is based on the coupon rate multiplied by the par value of the stock. c) A firm's WACC will decrease as the corporate tax rate decreases. d) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.

The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity

Description : The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity

Last Answer : c) coupon rates

Present rate of interested on on 1, 2, 4, 5 years fixed deposit(TD) is a) 6.25%, 6.50%, 7.25%, 7.50% b) 7.25%, 7.50%, 8%, 8.2% c) 8.2%, 8.3%, 8.4%, 8.5% d) None of these

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Last Answer : c) 8.2%, 8.3%, 8.4%, 8.5%

Which of the following bonds has the shortest duration? a) A bond with 20-year maturity, 10% coupon rate b) A bond with 20-year maturity, 6% coupon rate c) A bond with 10-year maturity, 6% coupon rate d) A bond with 10-year maturity, 10% coupon rate

Description : Which of the following bonds has the shortest duration? a) A bond with 20-year maturity, 10% coupon rate b) A bond with 20-year maturity, 6% coupon rate c) A bond with 10-year maturity, 6% coupon rate d) A bond with 10-year maturity, 10% coupon rate

Last Answer : All else constant, a bond with a longer maturity will be more sensitive to changes in interest rates. All else constant, a bond with a lower coupon will have greater interest rate risk. The correct answer was D) 10-year maturity, 10 percent coupon rate.

If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Description : If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Last Answer : d) cap in a floating-rate note

A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ? (A) Rs. 905•33 (B) Rs. 850•45 (C) Rs. 833•33 (D) Rs. 820•20

Description : A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ? (A) Rs. 905•33 (B) Rs. 850•45 (C) Rs. 833•33 (D) Rs. 820•20

Last Answer : Answer: Rs. 905•33

Total literate population of city E is what percentage of total population of city D? 1) 67.5% 2) 71.5% 3) 74.5% 4) 77.5% 5) 82.5%

Description : Total literate population of city E is what percentage of total population of city D? 1) 67.5% 2) 71.5% 3) 74.5% 4) 77.5% 5) 82.5%

Last Answer : 2) 71.5%

An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925

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Last Answer : b) Rs.1389

_______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Description : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Last Answer : c. Derivatives

Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%

Description : Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%

Last Answer : (b) 3% ;

A portion of Rs.6600 is invested at a 5% per annum, while the remainder is invested at a 3% per annum. If the annual income from the portion earning a 5% per annum is twice that of the other portion, what is the total income from the two investments after one year? a) Rs.270 b) Rs.370 c) Rs.250 d) Rs.280 e) None of these

Description : A portion of Rs.6600 is invested at a 5% per annum, while the remainder is invested at a 3% per annum. If the annual income from the portion earning a 5% per annum is twice that of the other portion, what is the ... investments after one year? a) Rs.270 b) Rs.370 c) Rs.250 d) Rs.280 e) None of these

Last Answer : 5x + 3y = z (Total Income) x + y = 6600 -(1) 5x= 2(3y) 5x – 6y = 0 -(2) By solving (1) and (2) we get, x = 3600 so y = 3000 (3600*5*1)/100 + (3000*3*1)/100 = 180 + 90 = 270 Answer: a)

A shopkeeper marked a suit at Rs.400. He sold it after allowing a discount, and still made at a profit of 25%. At what percentage above its cost price did he marked the suit, if he sold it for Rs.320? a)50% b)66 2/3% c)62 1/2% d)56 1/4%

Description : A shopkeeper marked a suit at Rs.400. He sold it after allowing a discount, and still made at a profit of 25%. At what percentage above its cost price did he marked the suit, if he sold it for Rs.320? a)50% b)66 2/3% c)62 1/2% d)56 1/4%

Last Answer : d)56 1/4%

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Last Answer : a. It is reduced by 50%.

The retrofitting of a variable speed drive in a plant costis Rs 0.5 lakh. The maintenance cost is Rs. 5,000/year. The return on investment is a) 25% b) 22.5% c) 24% d) 27.5%s Rs 2 lakh. The annual savings

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Last Answer : b) 22.5%

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Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration

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Which of the following is the capitalization rate of the BC Ltd.? a) 5.0% b) 3 % c) 4% d) 4.5%

Description : Which of the following is the capitalization rate of the BC Ltd.? a) 5.0% b) 3 % c) 4% d) 4.5%

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The acceptance criteria for precision studies as per bioanalytical method validation is? A. % RE must be within + 10% B. % RE must be within + 15% C. % RE must be within + 20% D. % RE must be within + 5%

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It takes 6 hours to dry a wet solid from 50% moisture content to the critical moisture content of 15%. How much longer it will take to dry the solid to 10% moisture content, under the same drying conditions? (The equilibrium moisture content of the solid is 5%). (A) 15 min (B) 51 min (C) 71 min (D) 94 min

Description : It takes 6 hours to dry a wet solid from 50% moisture content to the critical moisture content of 15%. How much longer it will take to dry the solid to 10% moisture content, under the same drying conditions? (The ... 5%). (A) 15 min (B) 51 min (C) 71 min (D) 94 min

Last Answer : (C) 71 min

Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?

Description : Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?

Last Answer : The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.

Wha% is the annual average growht rate of agriculture in last decade of 2000s? A. 2.7% B. 3% C. 3.5% D. 4%

Description : Wha% is the annual average growht rate of agriculture in last decade of 2000s? A. 2.7% B. 3% C. 3.5% D. 4%

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What is the maximum limit of remuneration for a whole time manager in a company ? (A) 3% of net annual profit (B) 5% of net annual profit (C) 7% of net annual profit (D) None of the above

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What is the annual future earnings of the AZ Ltd. using ‘Capitalization of Earning Method’? a) Rs.150 crore b) Rs.180 crore c) Rs.200 crore d) Rs.190 crore

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Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost (C) Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

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Vinegar is a (a) 5% solution of acetic acid in water (b) 25% solution of acetic acid in water (c) 50% solution of acetic acid in water (d) 40% solution of formic acid in water

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What percentage of the human genome is identical to the yeast genome? a. 5% b. 10% c. 25% d. 50%

Description : What percentage of the human genome is identical to the yeast genome? a. 5% b. 10% c. 25% d. 50%

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The profit made by David in selling his calculator for Rs.400 would be the same as the loss he would have made in selling it at a 25% loss. If he sold his calculator after offering a discount of Rs.100, find the percentage at which he marked it above the cost price. a)56.25% b)62.5% c)60% d)50%

Description : The profit made by David in selling his calculator for Rs.400 would be the same as the loss he would have made in selling it at a 25% loss. If he sold his calculator after offering a discount of Rs.100, find the percentage at which he marked it above the cost price. a)56.25% b)62.5% c)60% d)50%

Last Answer : a)56.25%

A manufacture undertakes to supply 2000 pieces of a particular component at Rs.25 per piece. According to his estimates, even if 5% fail to pass the quality tests, then he will make a profit of 25%. However as it turned out, 50% of the components were rejected. What is the loss to the manufacture? [TCS recruitment exam question] A. Rs 12,000 B. Rs 13,000 C. Rs 14,000 D. Rs 15,000 E. None f these

Description : A manufacture undertakes to supply 2000 pieces of a particular component at Rs.25 per piece. According to his estimates, even if 5% fail to pass the quality tests, then he will make a profit of 25%. However as it turned out, ... A. Rs 12,000 B. Rs 13,000 C. Rs 14,000 D. Rs 15,000 E. None f these

Last Answer : Answer - B. Rs 13,000 Explanation: 5% of 2000=100 so 2000-100=1900 so,if he sells 1900 he will get 25% profit cost per piece rs 25 so 25x 1900 don't solve here if 125% . ... /125=38000=CP if 50% rejected,only 1000 pieces sold so 1000 25=25000=SP loss=cp-sp= 38000-25000=13000

A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset

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Which of the following is not a feature of bonds ? (A) Par value (B) Yield to maturity (C) Coupon rate (D) Maturity

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Last Answer : Answer: Yield to maturity

If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0

Description : If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0

Last Answer : c) Rs.1,50,000

The bond stress for deformed bars is more than that in plain bars by [ A ] 25% [ B ] 40% [ C ] 60% [ D ] 50%

Description : The bond stress for deformed bars is more than that in plain bars by [ A ] 25% [ B ] 40% [ C ] 60% [ D ] 50%

Last Answer : [ B ] 40%

The bond stress for plain bars in compression is more than that for bars in tension by [ A ] 25% [ B ] 40% [ C ] 60% [ D ] 50%

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Last Answer : [ A ] 25%

A drug (200 mg dose) administered in tablet form and as intravenous injection (50 mg dose) showed AUG of 100 and 200 microgram hr/mL, respectively. The absolute availability of the drug through oral administration is : (A) 125% (B) 250 % (C) 12.5% (D) 1.25%

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Last Answer : (C) 12.5%

The number of subjects incorporated in the Union List is - (1) 97 (2) 102 (3) 82 (4) 89

Description : The number of subjects incorporated in the Union List is - (1) 97 (2) 102 (3) 82 (4) 89

Last Answer : (1) 97 Explanation: The Union List or List-I is a list of 100 items (though last item is numbered 97) given in Part XI of the Constitution of India on which Parliament has exclusive power to legislate. This list is found in Article 246 under Seventh Schedule.

In sea urchin DNA, which is double stranded, 17% of the bases were shown to be cytosine. The percentages of the other three bases expected to be present in this DNA are (a) G 17%, A 33%, T 33% (b) G 8.5%, A 50%, T 24.5% (c) G 34%, A 24.5%, T 24.5% (d) G 17%, A 16.5%, T 32.5%.

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Last Answer : (a) G 17%, A 33%, T 33%

In which article of the Constitution of India has the Joint Sitting of the Lok Sabha and the Rajya Sabha been provided? (A) Article 101 (B) Article 108 (C) Article 133 (D) Article 102

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Last Answer : (B) Article 108

In which article of the Constitution of India has the Joint Sitting of the Lok Sabha and the Rajya Sabha been provided? (A) Article 101 (B) Article 108 (C) Article 133 (D) Article 102

Description : In which article of the Constitution of India has the Joint Sitting of the Lok Sabha and the Rajya Sabha been provided? (A) Article 101 (B) Article 108 (C) Article 133 (D) Article 102

Last Answer : (B) Article 108

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Last Answer : 101,325

Under which Act GST was introduced? (A) 100 (B) 101 (C) 102 (D) 103

Description : Under which Act GST was introduced? (A) 100 (B) 101 (C) 102 (D) 103

Last Answer : (B) 101

GST was introduced as the ................... amendment Act. A 100 (B) 101 (C) 102 (D) 103

Description : GST was introduced as the ................... amendment Act. A 100 (B) 101 (C) 102 (D) 103

Last Answer : (B) 101

Two jars having a capacity of 3 and 5 litres respectively are filled with mixtures of milk and water. In the smaller jar 25% of the mixture is milk and in the larger 25% of the mixture is water. The jars are emptied into a 10 litre cask whose remaining capacity is filled up with water. Find the percentage of milk in the cask. a) 55% b) 50% c) 45% d) 25% e) None of these

Description : Two jars having a capacity of 3 and 5 litres respectively are filled with mixtures of milk and water. In the smaller jar 25% of the mixture is milk and in the larger 25% of the mixture is water. The jars are emptied ... the percentage of milk in the cask. a) 55% b) 50% c) 45% d) 25% e) None of these

Last Answer : Answer: D 0.75+3.75=4.5/10+8*100=4.5/18*100=25%

Biological value of protein of cow’s milk is (A) 95 (B) 60 (C) 71 (D) 67

Description : Biological value of protein of cow’s milk is (A) 95 (B) 60 (C) 71 (D) 67

Last Answer : Answer : B

The terminal value in year 6 is closest to __________. a) Rs.22.57 b) Rs.20.42 c) Rs.24.30 d) Rs.25.70

Description : The terminal value in year 6 is closest to __________. a) Rs.22.57 b) Rs.20.42 c) Rs.24.30 d) Rs.25.70

Last Answer : a) Rs.22.57

Which exchange-rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium? A. Dual Exchange rates B. Adjustable Pegged Exchange Rates C. Managed Floating Exchange Rates D. Crawling Pegged Exchange Rate

Description : Which exchange-rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium? A. Dual Exchange rates B. Adjustable Pegged Exchange Rates C. Managed Floating Exchange Rates D. Crawling Pegged Exchange Rate

Last Answer : D. Crawling Pegged Exchange Rate

The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be a) 20% b) 5% c) 50% d) 20%

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Last Answer : a) 20%

my blood perssure is 175 over 102 andpulse is 71?

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Last Answer : my blood perssure is 175 over 102 and p is 71

Assume postal rates for 'light letters' are: $0.25 up to 10 grams; $0.35 up to 50 grams; $0.45 up to 75 grams; $0.55 up to 100 grams. Which test inputs (in grams) would be selected using boundary value analysis? A. 0, 9,19, 49, 50, 74, 75, 99,100 B. 10, 50, 75,100, 250, 1000 C. 0, 1,10,11, 50, 51, 75, 76,100,101 D. 25, 26, 35, 36, 45, 46, 55, 56

Description : Assume postal rates for 'light letters' are: $0.25 up to 10 grams; $0.35 up to 50 grams; $0.45 up to 75 grams; $0.55 up to 100 grams. Which test inputs (in grams) would be selected using boundary value analysis? A. 0, 9,19, ... C. 0, 1,10,11, 50, 51, 75, 76,100,101 D. 25, 26, 35, 36, 45, 46, 55, 56

Last Answer : C. 0, 1,10,11, 50, 51, 75, 76,100,101

Rebate is allowed on advance deposit of premium on RPLI for Qtly/Half year/year is a) 1%, 2%,3% b) 0.50%,1%,2% b) 0%, 1%,2% d) No rebate in RPLI

Description : Rebate is allowed on advance deposit of premium on RPLI for Qtly/Half year/year is a) 1%, 2%,3% b) 0.50%,1%,2% b) 0%, 1%,2% d) No rebate in RPLI

Last Answer : b) 0.50%,1%,2%

The licensee is also entitled a commission on the value of frank used a) 6% b) 3% c) 9% d) 5%

Description : The licensee is also entitled a commission on the value of frank used a) 6% b) 3% c) 9% d) 5%

Last Answer : b) 3%

Biological value of soyabean protein is (A) 86 (B) 71 (C) 64 (D) 54 MINERAL METABOLISM 193

Description : Biological value of soyabean protein is (A) 86 (B) 71 (C) 64 (D) 54 MINERAL METABOLISM 193

Last Answer : Answer : C